Canada announces plans for stablecoin legislation

During Canada’s budget announcement, the government unveiled plans to regulate stablecoins backed by fiat currency. Its goal is to standardize reserve management, redemption, risk management and privacy.

In a recent speech, Bank of Canada Director Ron Morrow called for regulation. He said, “Canada should also weigh the merits of federal stablecoin regulation, similar to what other countries have done.” The passage of the US GENIUS Act has spurred other nations to act. Morrow highlighted the large immigrant Canadian population who pay high fees for cross border payments.

He gave a nod to Tetra Digital Group’s September announcement of plans to launch a Canadian dollar stablecoin. The company simultaneously received C$10 million in funding, including backing from National Bank and Shopify.

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